Realistic to Move to Argentina and Live Off Investments?

[oddDistribution]

They are constantly changing the requirements, for no apparent reason, and without warning.
So if you want predictability, you may not be happy.
I always tell people- move to Argentina if you love Argentina.
Not because you heard it was cheap.
Sometimes its cheap, sometimes its not.
It has a lot of its own unique charms, and if you love it, its worth the vagueries of the system.
There is always a way to do almost anything here, but its seldom obvious, simple, or easy. It requires work, talking to people, and perseverence.
For me, there is no question its worth it.
But a lot of people dont think so.

I can understand and accept that. If there's a path where I would have a solid chance of making things work for my personal situation in Argentina then I'm willing to spend time, money and effort on it. If it's not possible due to visa or tax issues then I'll have to cross it off my list and focus on somewhere else.

 

[Alby]

Do some heavy duty searching on this website. There is a wealth (pun intended) of information on tax obligations generally, and the bienes personales (wealth) tax more specifically. Some accountants have been recommended.

Many people argue that the "intention" of the tax is not to target immigrants like us but instead Argentines who take wealth off shore. That's why it's controversial on this website.

If you are risk averse and want to comply with the wealth tax, you could lose up to 2.25% of your wealth each year (although paying in pesos in installments over a year softens the hit). There is likely to be a change of government this year, and the tax will probably reduce, or disappear. But it could then come back again under a future government.

 

[oddDistribution]

Do some heavy duty searching on this website. There is a wealth (pun intended) of information on tax obligations generally, and the bienes personales (wealth) tax more specifically. Some accountants have been recommended.

Many people argue that the "intention" of the tax is not to target immigrants like us but instead Argentines who take wealth off shore. That's why it's controversial on this website.

If you are risk averse and want to comply with the wealth tax, you could lose up to 2.25% of your wealth each year (although paying in pesos in installments over a year softens the hit). There is likely to be a change of government this year, and the tax will probably reduce, or disappear. But it could then come back again under a future government.

Ok, I'll keep searching through this site. I'm glad I found this community.

I cannot afford to pay that much on my global assets personally...

 

[Alby]

I've written alot about it. Quilombo's written alot about it. Irelanda's posted an excellent analysis of it. Antipodean too. Others have posted. None of us are accountants, but we can read and have common sense. There's plenty to get you started. There's no one clear answer. It comes down to individual value judgements and risk appetite. If you were inclined for the Rentista pathway, you would need an accountant to help you make the final decision.

Ok, I'll keep searching through this site.

 

[Cordoba]

Ok, I'll keep searching through this site. I'm glad I found this community.

I cannot afford to pay that much on my global assets personally...

I believe if you obtain citizenship and then move away for a full year declaring yourself a non-resident for income and wealth taxes you can return for half the year and only pay on your Argentine assets. So moving back in forth with the seasons could have a significant tax advantage if you choose to follow the rules.

I think the wealth tax doesn't factor in debt either so if you have real estate or other investments mostly financed by debt that could get ugly.

 

[oddDistribution]

I believe if you obtain citizenship and then move away for a full year declaring yourself a non-resident for income and wealth taxes you can return for half the year and only pay on your Argentine assets. So moving back in forth with the seasons could have a significant tax advantage if you choose to follow the rules.

I think the wealth tax doesn't factor in debt either so if you have real estate or other investments mostly financed by debt that could get ugly.

Thanks. That sounds like an interesting idea. It might be difficult to put down roots and make connections that way though.

Right now I'm trying to find an accountant that can give me a thumbs up or down on the wealth tax. As I mentioned to @Alby I can't afford to pay it on my global assets..

 

[toongeorges]

Thank you for your reply. That makes sense. Do you happen to know a good accountant? If the wealth tax outcome is not good for me then I don't think I can afford to live in Argentina

The wealth tax is major reason for me to have left Argentina this year.

The advice of the lawyer I visited was: try to avoid triggering becoming an Argentine resident. To be safe with migraciones, you could not stay more than 180 days per year in Argentina. The Argentine taxes have another criterium, for them you need to have spent less than 90 days per year out of Argentina, this is less strict. (Once you are a resident it is harder to get rid of this status). The biggest issue is migraciones, if you overstay without being a resident, you risk being denied entry to Argentina after you go abroad.

Another option is to hide your wealth. I think the US and Argentina so far do not exchange information about people's assets, but most European countries do to some extent. You have to decide for yourself if this is what you want to do.

Another option tax-wise is Uruguay. Uruguay only taxes what you earn inside Uruguay and does not care about your assets abroad. It is not the same country though, but it is close to Argentina, so Argentina is easy to visit.

 

[toongeorges]

I think the wealth tax doesn't factor in debt either so if you have real estate or other investments mostly financed by debt that could get ugly.

You can deduct mortgages from your wealth, but I am not aware of other debt

 

[oddDistribution]

The wealth tax is major reason for me to have left Argentina this year.

The advice of the lawyer I visited was: try to avoid triggering becoming an Argentine resident. To be safe with migraciones, you could not stay more than 180 days per year in Argentina. The Argentine taxes have another criterium, for them you need to have spent less than 90 days per year out of Argentina, this is less strict. (Once you are a resident it is harder to get rid of this status). The biggest issue is migraciones, if you overstay without being a resident, you risk being denied entry to Argentina after you go abroad.

Another option is to hide your wealth. I think the US and Argentina so far do not exchange information about people's assets, but most European countries do to some extent. You have to decide for yourself if this is what you want to do.

Another option tax-wise is Uruguay. Uruguay only taxes what you earn inside Uruguay and does not care about your assets abroad. It is not the same country though, but it is close to Argentina, so Argentina is easy to visit.

I'm sorry to hear that you had to leave. I'm starting to think that Argentina may not work out for me. I contacted a tax attorney in BA yesterday and he is going to get back to me on whether there is anything I can do to avoid the wealth tax.

Uruguay is actually on my list of places to consider moving to. I think it's not too hard to get a resident visa. I've never been there though. How do you think of it as a place to live? Is it affordable in general?

 

[sts7049]

I'm sorry to hear that you had to leave. I'm starting to think that Argentina may not work out for me. I contacted a tax attorney in BA yesterday and he is going to get back to me on whether there is anything I can do to avoid the wealth tax.

Uruguay is actually on my list of places to consider moving to. I think it's not too hard to get a resident visa. I've never been there though. How do you think of it as a place to live? Is it affordable in general?

it's more expensive for sure. but it is also economically stable.